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Role of development finance

The investment institutions comprise LIC of India and GIC of India.

With increasing integration b/w different segments of financial markets facilitated by liberalization, the conduct of monetary and credit policy has become critical for the efficient functioning of the financial system.

Recent years have witnessed a blurring of the traditional distinction between banks and financial institutions. The financial savings and households hold by these institutions are long term liabilities which can be converted into long term assets.

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